The Holy Grail for day traders and investors is finding hot stocks to buy. Given the huge profit windfalls possible it isn’t that surprising. Often lucky day traders and investors who find the hot stocks to buy will land gains as high as 10,000%. The truly lucky can land six figure incomes, such as the case with Connor Bruggemann who did $300,000 trading penny stocks.
But reality is often a cruel master and it helps to understand where the upsides and downsides settle when dealing with hot stocks to buy. The biggest danger here is that jumping into a penny stock that is deemed hot could be costly unless you have a certain strategy in place.
Hot Stocks To Buy – The Strategy That Works
That strategy, all things considered, should be a short term one. That is to say, when buying hot stocks to buy, you really should be focused on short term moves. Why is this? The reason hot stocks are suited mostly for short term moves is based on a market phenomenon called volatility. This is a measure of the degree of fluctuation that accompanies a stock’s valuation or trading price. Hot stocks to buy are usually highly volatile and as such, are susceptible to wild and dramatic fluctuations.
Hot Stocks To Buy – Why You Should Go For It
Of course, this inherent volatility doesn’t mean you shouldn’t attempt to profit from hot stocks to buy. Far from it. So long as you know and understand the fundamentals and tricks of finding these stocks then by all means, go after them.
The advice here is to get familiar with the tools and strategies for finding great hot stocks to buy. One of those tools is Yahoo Finance (YF), the market and finance portal run by former tech giant Yahoo. Yahoo Finance is easily one of the few good points about Yahoo as a company today and it is relied upon by millions of traders and investors for finding hot stocks to buy. YF lists all the action for the day, including the indexes that are trading up or down, as well as commodities that are doing well. That’s top-level stuff. At the more granular level you can research a stock’s historical performance, as well as see the intricacies of its most recent trading profile.
Hot Stocks To Buy – A Solid Tool
But perhaps the biggest and best tool for spotting hot stocks to buy is Finviz.com. The free service shows you the day’s hottest movers, outlining volume, insider trades, and a host of other detailed metrics to help you make a decision on a particular stock. Finviz also delves deep into the early-morning activities of a certain stock. You can see premarket news, as well as any early activity that develops before the actual start of trading. The platform’s filtering capabilities are second to none, offering unrivaled granular insights on a stocks long term metrics (PE ratio etc.), as well as short term indicators such as RSI, Public Float, ATR, and historic volatility.
Once you spend enough time using both tools you’ll develop a strong sense of when hot stocks to buy are worth your attention. This can be every day depending on good you develop a high for spotting them. The important thing to remember here is that hot stocks to buy work best with a short term strategy. Get the wires mixed up there and you could land in hot water. Of course you can avoid all of that by making sure that your short-term trading or investing strategy is matched with the right stock picks. You do that by simply subscribing to a newsletter that provides these sorts of short-term picks for free. They aren’t created equal so you’ll have to be careful about what you sign up for. The best ones are free, 100% transparent, and go out of their way to teach you how to get better. This one isn’t so bad; check them out today.